MIT Golub Center for Finance and Policy

You’re Probably Overinvested in Bonds

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MIT GCFP - Viewpoints

THE WALL STREET JOURNAL | Don’t Buy the 60-40 Portfolio. Go for 90-10 Instead features an opinion piece by Robert C. Pozen, Distinguished Senior Lecturer at the MIT Sloan School of Management and former president of Fidelity Investments. Pozen argues that many affluent investors hold too much in bonds and not enough in equities, making the case that a 90-10 portfolio — 90% in a low-cost stock index fund and 10% in a money-market fund — may offer stronger long-term returns for investors who can withstand temporary market declines.

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(The GCFP does not make policy recommendations, and any opinions expressed are those of the authors and not the GCFP.)

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